Editorial: Lottery, HOPE approach tipping point

Saturday

Jun 29, 2019 at 7:20 PM

Twenty-six years ago Saturday, the first Georgia Lottery tickets went on sale, funding the brand-new HOPE Scholarship in Georgia. Twenty-six years ago, Gov. Zell Miller led the charge to use lottery funds to support scholarships to make college more affordable and to keep Georgia’s "best and brightest” students in the Peach State.

At the time, the HOPE Scholarship was widely considered to be one of the nation’s most innovative education-based initiatives. When the program originally launched in 1993, Georgia high school students with a 3.0 GPA or higher could attend in-state public universities tuition-free. The program was funded by state lottery revenue, with a portion of the proceeds also going to pre-kindergarten programs across the state. To date, more than 1.8 million students in Georgia have received HOPE scholarships or grants since the program launched.

Losing HOPE

The first year of lottery ticket sales in Georgia brought in a record $1.13 billion, providing $360 million for the HOPE Scholarship program. Despite its promising start in 1993, however, the HOPE Scholarship program is currently in jeopardy.

State lottery revenue is down significantly and currently covers only about 60 percent of HOPE costs. It’s deeply troubling that Georgia is wholly dependent on a single revenue source for this important statewide education initiative.

The Atlanta Journal-Constitution recently reported that HOPE scholarship awards were down by $74.6 million in fiscal year 2018, compared to fiscal year 2011, according to Georgia Student Finance Commission data. Declining lottery revenue is having a ripple effect across the state, resulting in less funding to allocate to college students. In light of rising tuition costs, this trend is particularly alarming.

Georgia is nearing a watershed moment, when this once-promising funding source is on the ropes. Study committees in both chambers of Georgia’s legislature are looking at the possibility of expanding gambling, from casinos to horse racing. State Rep. Ron Stephens (R-Savannah) has said that he’s in favor of a constitutional amendment.

“There are only two paths: cutting costs and thus further hurting the program or ensuring there’s a new, substantial source of annual revenue,” Stephens has said. “That’s why I continue to support a major legislative reform: Pass a constitutional amendment that voters statewide would approve or disapprove, along with enabling legislation, to allow limited destination-resort casinos whose revenues would flow into the HOPE/pre-K fund.”

Think outside the box

However, expanding gaming in Georgia isn’t necessarily a panacea that will cure the HOPE Scholarship’s woes. Cities like Detroit, Michigan, and Atlantic City, New Jersey, have had mixed results with legalized gambling.

Ultimately, it’s up to Peach State citizens to decide the best course of action. A referendum would allow the public to decide whether or not to support full legalization of gambling in Georgia or just casinos.

There are other options, as well, like increasing the percentage of Georgia Lottery proceeds that fund the HOPE program. Currently, only 26 percent of the revenue goes to HOPE and pre-kindergarten programs, with 63 percent set aside for prize money and the rest covering administrative and other costs.

A previous attempt, led by State Sen. Bill Cowsert (R-Athens) to pass legislation increasing the percentage of revenue earmarked for HOPE Scholarships, failed to get traction in the state legislature. However, it may be time to revisit this strategy and to come up with solutions that don’t depend upon expanding gambling in Georgia.

Let’s encourage our political leaders to get creative, think outside the proverbial box and explore other funding options besides gambling. Current and future generations of Georgia college students attending public universities, private colleges and technical colleges need HOPE Scholarship funding to put higher education within reach. As the cost of attending college continues to rise, it’s imperative that we find a way to make college more affordable for talented students across Georgia.

The stakes are high, and this is not the time to gamble with the future of our state’s college students. Let’s work toward a solution that will provide stable, long-term funding for the HOPE Scholarship program, supporting Georgia’s future leaders.

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